Megionneftegaz met the production target ahead of schedule

December 28, 2016/ 14:55

Megion. KhMAD. OJC Slavnetf-Magionneftegaz (SN-MNG) met the year business plan ahead of schedule. On 26 December the company produced 14,700,434 tons of oil.
On preliminary estimations the planned production indicators will be exceeded by 200 thousand tons by the year end. The positive dynamics is due to proper planning and efficient implementation of well interventions program, as well as the efficient management of the base well stock. It’s worth mentioning that for the key well interventions, such as hydraulic fracturing, sidetracking, etc. the results exceed not only the plan, but also the indicators of 2015.
In 2016 a number of innovative technologies were tested in Slavnetf-Magionneftegaz fields. Among them there are 10-stage frac by HiWAY method, 15-stage fract with a sleeve-ball assembly, 20-stage by Mongoose technology with cemented expandable sleeves, 3 and 4-stage repeated frac jobs using SPOT-FRAC technology. Each of them proved to be efficient. For example, the frac job by HiWAY method in one of the pilot wells increased its daily production almost two-fold and SpotFrac in another well gave additional 30 tons a day. In general, added production due to well interventions in 2016 will amount to 1,915 thousand tons, which is 145 thousand tons more than planned.
In 2016 the total meterage for Slavnetf-Magionneftegaz fields exceeded one million meters. Before the year end 208 new well will be put into operation. The actual production will amount to 1074 thousand tons of hydrocarbons, which is 51 thousand tons more than planned. The rate of drilling also increased. In 2016 a record for commercial drilling rate, 15,353 m/rig per month, was registered in a Slavnetf-Magionneftegaz field, and the daily meterage of 1,550 m/day.
The company also succeeded in hard-to-recover reserves development. From June 2015 to December 2016 their production amounted to 676.2 thousand tons, the expected tax relief will amount to 710.25 mln Rub.
Slavnetf-Magionneftegaz has also been engaged into adding new reserves. In 2016 only they added 27.4 mln tons of recoverable reserves, which is 3.2 mln tons more than in the previous year. Besides, in December 2016 Slavnetf-Magionneftegaz the exploration and production right for Zapadno-Chistinny license area. The total recoverable reserves of the new asset amount to 3.3 million tons of oil.

“The development strategy of Slavnetf-Magionneftegaz is to stabilize and then increase the production volume. Among our multiple objectives are the following: discovering highly productive formations, increasing the scope and efficiency of drilling, reducing the time and optimizing the costs, developing infrastructure”, says Alexey Kan, the general director for SN-MNG. “in 2016 Megionneftegaz focused on labor safety, now the focus is shifting to environment. We want to stress the top priorities of our operations: work without damage to people’s lives and health as well as the environment”.